AFC secures $100m from India Exim to drive post-COVID recovery
Africa Finance Corporation (AFC), the leading infrastructure solutions provider on the continent, has received a $100 million credit line from the Export-Import Bank of India (India Exim Bank) to develop critical infrastructure required to rebuild Africa’s economies following the COVID-19 pandemic.
This move will further boost activities of the AFC which draws capital from a diverse range of international investors and lenders as part of its strategy to maintain Africa’s second highest investment grade credit ratings.
According to the corporation, proceeds from the 10-year loan will support its continued mission to bridge Africa’s infrastructure gap and drive sustainable economic growth that is urgently required on the continent.
Harsha Bangari, deputy managing director, India Exim Bank said the bank, which is the sovereign export credit agency of India, has actively sought opportunities to co-finance projects in Africa through credit lines to support infrastructure development.
He added that the India Exim Bank provides credit lines to national governments, regional financial institutions, commercial banks and other overseas entities as part of its strategy to develop global partnerships.
“As part of our mandate, India Exim Bank continues to foster a network of alliances and institutional linkages with multilateral agencies like Africa Finance Corporation, who have a strong credit profile and are at the forefront of changing the development landscape in Africa,” he said.
Samaila Zubairu, president and CEO, AFC, said although the COVID-19 pandemic has slowed down Africa’s growth trajectory and compounded its development challenges, AFC will continue to execute its mandate of addressing Africa’s infrastructure needs along with its partners.
“Working with leading development partners such as India Exim Bank, these strategic partnerships help mobilize the urgently needed capital to rebuild Africa post-pandemic, with more resilient and sustainable infrastructure across key sectors including renewable energy, transportation and telecommunications,” he said.
Membership of the corporation has also increased as Egypt became its 32nd member, offering potential investments valued at one billion dollars.
Prior to this, AFC has already invested over $100 million in infrastructure projects in Egypt, including the Egyptian General Petroleum Corporation and Carbon Holdings, a petrochemicals conglomerate.
The corporation has identified a further $600 million worth of projects across the renewables, natural gas, as well as the transport and logistics sectors and expects to invest over $1billion in total.
As a member, Egypt will enjoy benefits including increased investment allocation, preferred access to AFC’s structuring and lending solutions, reduced debt costs for projects, and access to advisory and project development services.